IRCo may restrict NR exports as prices fall

Singapore - Prices of natural rubber have fallen by over one third since their peaks in late June. Prices around the world are now back to levels last seen at the end of 2005, around $1.80 /kilo, compared with $2.80 at the peak in late June of this year.

Although those prices are still high compared to prices over the last six years, the Malaysian government is reportedly seeking intervention by the International Rubber Consortium Ltd (IRCo), a commercial company set up in 2002 to stabilise rubber prices with the aim of improving business planning. IRCo is sponsored by the governments of Thailand, Malaysia and Indonesia

IRCo said it may request that member governments restrict exports of NR if prices fall much further. The Malaysian Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui, was quoted in Malaysian papers saying he thought prices of US$1.50-US1.70 per kg. would be acceptable to all sides in the business.

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